The purchase also includes leases for the upscale boutique
hotel's retail and restaurant tenants and a parking garage that backs
up to the MassPike.

The deal is set to close tomorrow for undisclosed terms, said
Michael Everett, chief investment officer for Sage, a privately held
company with 55 hotels.

Sage has been targeting urban assets for the past 15 years and
found success with similar hotels in Denver, Chicago, Portland and San
Diego, Everett said.

"Boston, specifically, has been a target of ours given the
health of the market," he said. "The strength of the hotel market the
last 24 months has been very, very impressive. We don't see a lot of
new product coming into Boston over the next two to three years, so
there's limited competition on a go-forward basis."

A BU spokesman said the school was "hopeful that we'll close a
deal soon."

Everett would not reveal the purchase price for the hotel. A
source close to the deal put the price for the hotel alone in the range
of $275,000 per room -- or $41 million _ but said the leases put the
deal's total value much higher. "The retail component is worth a
significant part of the deal," the source said.

The hotel's parking garage also has redevelopment potential
because it's zoned for higher density,

Sage plans to spend a few million dollars on cosmetic upgrades
to guest rooms.

The $70 million, six-story hotel, which replaced 14 rundown
buildings, was unveiled in 2003, drawing immediate criticism over the
facade's quality, style and color. Billed as French Second Empire style
during permitting, it ended up resembling a plastic Lego sculpture,
prompting a ?$4 million makeover.